Yesterday’s signals were not triggered, as there was no bearish action when the price reached 1.3145.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm London time today.
Short Trades
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Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3174 or 1.3217.
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Place the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is 25 pips in profit.
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Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
Long Trade
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Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3140.
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Place the stop loss 1 pip below the local swing low.
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Adjust the stop loss to break even once the trade is 25 pips in profit.
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Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
GBP/USD Analysis
I wrote yesterday that this was the most interesting major currency pair at present, with the looking likely to advance to the next level at 1.3145. I was right about taking a bullish bias above 1.3100, which paid off with this pair being the major mover yesterday.
Over the medium-term, this pair still looks like the most bullish or bearish of all the majors, in the bullish direction. However, we are starting to see some short-term changes which suggest that this situation is not likely to last. I think if the price can break below 1.3140 soon, we are likely to see a deeper bearish retracement today, with no support levels close below that to hold up the price.
There is nothing important due today concerning either the GBP or the USD.
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